“Current principal shareholders are affiliates of General Atlantic LLC and Quadrangle Group LLC.”

Guess who’s going to be getting pretty rich considering this goes through and there are ‘greater fools’ out there willing to pay the IPO price? It’s simple – the 2 LLCs’ above. So who says LLCs aren’t the way to generate serious wealth?

For you finance quants out there, you already know that the cost of capital of equity is always much higher than that of the cost of debt because of the risk premium investors look for . . . so that being said, what is their WACC going to be a year after IPO? I’d love to see the analysis.

P.S. I’m calling anyone a ‘fool’ – if you think I’m speaking in code, take a look at ‘Greater Fool Economic Theory’. This disclaimer is because I received an email from someone that thought I referred to them as a fool in a literal sense. Greater Fool theory says that something is not overpriced if I can find a greater fool to sell it to for more. That’s why tech stocks during the tech bubble could trade at 150x multiples – because the stock wasn’t overpriced if you could sell it to a greater fool for more. Just look out . . . because before you know it, the speculative bubble bursts and you’re stuck with a few worthless sheets of paper in your pocket!